Contractor Finance Glossary
What is Quote Conversion Rate?
Definition reviewed . Source observations retain their stated periods.
Also called: close rate, win rate, quote win rate
Quote conversion rate is the share of quotes that turn into won jobs, and it can be measured two ways: against every quote sent, or against only the quotes a customer actually decided on.
The denominator is the whole argument. Measured against all quotes, the rate looks low because it includes quotes still sitting in limbo. Measured against decided quotes (won plus explicitly lost), it tells you how often you win when the customer actually chooses. Both matter, and confusing them hides where the leak is.
A low all-quote rate and high decided rate can reflect pending work, weak follow-up or missing lost statuses. Spot-check old open quotes against actual customer decisions before blaming pricing or prescribing a cadence. Improve status hygiene first, then assess quote fit, response time, price and follow-through.
How it is calculated
All-quote conversion = won quotes divided by all eligible issued quotes. Decided conversion = won divided by (won plus explicitly lost), excluding pending/draft/cancelled. The Level Index reports 73.9% decided median and 38.1% all-quote median across n=794 companies (decided eligibility at least 20 decided quotes; all-quote basis is separately stated as 20+ quotes), overall research window 2022-2026. These are separate distributions, not a single representative company's pair or proof of follow-up effectiveness.
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